PPI on Bank Loan for New Business

chesterxiii

In 2002, I took out a personal loan with HSBC to start my own business, I was also sold ppi. Even though I was employed at the time I took out the loan, this loan was to help me go self employed. Do I have a misselling case as the bank manager knew I would only be employed for another 2 months and then self employed, which would make the ppi useless.
Cheers chesterxiii.

highadmiral

chesterxiii wrote: »

In 2002, I took out a personal loan with HSBC to start my own business, I was also sold ppi. Even though I was employed at the time I took out the loan, this loan was to help me go self employed. Do I have a misselling case as the bank manager knew I would only be employed for another 2 months and then self employed, which would make the ppi useless.
Cheers chesterxiii.

A good number of ppi policies do offer some cover the self employed unless you were working less than 16 hours a week.That said there are better options for the self employed and often cheaper too.

I would look at the loan itself and specifically whether you had a front loaded single premium policy.This is where the insurance was added in a lump sum to the loan principal and then interest applied on top.
This type of policy is now no longer sold and is a strong reason for complaint in itself.
If the ppi was single premium and with the self employed situation as a secondary area of complaint i would say you have a good case.

magpiecottage

highadmiral wrote: »

A good number of ppi policies do offer some cover the self employed unless you were working less than 16 hours a week.

Which would rule out one line of complaint.

That said there are better options for the self employed and often cheaper too.

Which is a reason to shop around but not grounds for complaint.

I would look at the loan itself and specifically whether you had a front loaded single premium policy.This is where the insurance was added in a lump sum to the loan principal and then interest applied on top.

Which would be grounds for complaint

This type of policy is now no longer sold and is a strong reason for complaint in itself.

By which you presumably mean single premium added to the loan.

The self-employed issue would only be ground for complaint if the policy did not cover the self-employed. Bear in mind that losing income through sickness, in particular, makes life really difficult if you work for yourself.

chesterxiii

Thanks for your posts, yes it was paid up front as a single payment . Although I've looked for the origional paperwork , I can't find it , so I guess I'll have to ask for a copy before I put a complaint in. Is the complaint about this single premium the fact that I paid interest on this for the entire length of the loan , or another reason?

dunstonh

o I guess I'll have to ask for a copy before I put a complaint in.

No you dont. You put the complaint in. You wont learn anything that will help your complaint from the agreement.

Is the complaint about this single premium the fact that I paid interest on this for the entire length of the loan , or another reason?

Single premium with interest added. Its where most loan PPI complaints win.

chesterxiii

Thanks again, I'll send a letter off next week and post something when I get a response.